Weekly Market Commentary – June 7th, 2016 – LPL Research
A Look at the GAAP Gap
The large gap between operating earnings and GAAP earnings, shown in Figure 1, has received a lot of attention from the financial media in recent months. Some have expressed the opinion that the size of the gap between these two earnings measures, 26% in the most recent four quarter period, is a signal of bigger earnings troubles ahead. We do not think so.